The Rama Fund (www.ramacapital.com), a private equity income fund focused on providing senior debt for commercial real estate bridge (hard money)loans. Our affiliate company is Athas Capital (www.athascapital.com), a full service commercial mortgage banker specializing in small balance bankable and bridge capital.
Key Investment points:
Income Fund. The Fund makes monthly distributions, although investors can elect to have their distributions automatically reinvested each month. IRA, ERISA, etc. retirement money is allowed.
Compelling Risk/Reward. The current audited annualized net yield is 10.5%.
Extreme Transparency. We invest in first trust deeds of commercial income producing properties, heavily favored on residential rentals, i.e., apartments. We do not have an exotic strategy of some hedge funds that trade in synthetic securities, derivatives, etc. (i.e., Madoff and Wall Street). Any investor or potential investor is always welcome to visit the office (or online) and review our deeds of trust and our mortgage notes. All investors can check with the county recorder’s office and verify that The Rama Fund is the recorded lien holder on each and every one of our investments.
Proprietary Deal Flow. Athas Capital Group is the name of our affiliated commercial mortgage banker. The Rama Fund has the right to a first look at all of Athas’ commercial bridge loans, and this allows the Fund to invest in only the safest loans that have the most protective equity and the most attractive. Anything that The Rama Fund does not finance is brokered out by Athas. Essentially, The Rama Fund can “cherry pick” the cream-of-the-crop out of the deal flow sourced by Athas.
Low Volatility. Everyone is aware of the volatility in the equity markets but most investment opportunities these days are volatile as well, including corporate bonds and other fixed income investments. Defaults do happen, however it‘s an important position that we hold no vintage 2006, 2007, or early 2008 loans, making our positions very attractive. In the event of default on any loan, the Fund immediately executes its right of assignment of all tenant rents to the fund from the underlying property, which helps to preserve the current yield of our portfolio.
Protection of Principle. The weighted average LTV of our current portfolio is 43.9%. This means that we have over 55% of protective equity cushion in our portfolio which helps insulate us from declines/fluctuations in underlying real estate values and helps to ensure that our investors’ capital is protected.
Short Duration. The average duration of our investments is 9-15 months. This helps protect us from secular declines in commercial real estate prices because we turn our entire portfolio about once every year. In a declining or potentially declining market, this further helps to protect our investors’ capital because we are continually re-investing proceeds from loans that payoff at then current values (and at big discounts thereto).